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PERSONALIZED ACTION PLAN FOR . SONJA HUGHES
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Date: May 18, 2009

Securities products and services are offered by E*TRADE Securities LLC, Member FINRA/SIPC
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SONJA HUGHES's PERSONALIZED ACTION PLAN
Date: May 18, 2009
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Congratulations! You've taken an important step in preparing for your
retirement. While you are moving in the right direction, the plan you created
might cause you to fall short of your retirement goals. Don't worry, though.
We've provided some simple suggestions for getting on track. Please see
Our Assumptions below for important information about your plan.
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HERE'S WHAT YOU'RE PROJECTED TO HAVE WHEN YOU RETIRE
Based on your inputs and Our Assumptions below
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PROJECTED RETIREMENT ASSETS

You're Likely to Have You're Likely to Need Your Result

$908,760 $1,039,677 $130,917 Shortfall

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HERE ARE THE DETAILS OF YOUR PLAN

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CURRENT PLAN

Monthly investments $1,300

Investing style Growth

Retirement age 55

Monthly supplemental income in retirement

(e.g., part-time job) $0

Monthly expenses in retirement $5,200

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5 THINGS YOU CAN DO NOW
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Open a Roth or Traditional IRA www.etrade.com/openanaccount
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Rollover old 401(k)s www.etrade.com/rolloverira
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Set up an Automatic Investing Plan www.etrade.com/automaticinvestment
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Review investing styles every 6 months or as needed if life events change www.etrade.com/allocate
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Talk with a Financial Advisor Call 1-877-800-1208 or www.etrade.com/advice
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HERE IS THE ASSET ALLOCATION APPLIED TO YOUR PLAN

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Growth
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Projected Retirement Assets
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Here's what you're on track to have at

retirement and any shortfall or surplus, based on
your inputs and Our Assumptions.
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Your results may vary with each use and over
time.

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Retirement Assets Over Time
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This is how much we predict the value of your

retirement assets will be, both at and during
your retirement, at three different confidence
levels (50%, 70%, and 90%). A confidence level
displays the plan's likelihood of success. For
additional information, please see Our
Assumptions below.
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Three Confidence Levels
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This chart displays what you're on track to have

at retirement at 3 confidence levels (50%, 70%,
and 90%) compared to what you're likely to
need at retirement. A confidence level displays
the plan's likelihood of success. For additional
information, please see Our Assumptions below.
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HERE ARE SOME ACTIONS TO CLOSE YOUR RETIREMENT SHORTFALL:
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INCREASE YOUR INVESTMENTS
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The Issue:
Paying down your debts is important. However, it makes sense to save and invest as much as you
can for retirement each and every month to fully leverage the power of compounding over the long
term.
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Actions to Take:
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If you are eligible to participate in an employer-sponsored
retirement plan, such as a 401(k) or 403(b), find out how
much you need to contribute to take full advantage of
employer matching.
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When you switch jobs, consider rolling over your plan
assets into an E*TRADE Rollover IRA. In some instances,
401(k) plans offer funds with higher fees. With an E*TRADE
Rollover IRA, you can generally choose lower cost
investments. As this chart illustrates, even 1% can make a
huge difference over time¹. Get started at
www.etrade.com/rolloverira.
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Consistent investing ensures you are more likely to
stick with your investment plan. An automatic investment
plan2 lets you transfer a fixed amount of money at set intervals
into any of the no-load, no transaction-fee mutual funds
we offer3. You can set up an automatic investment plan with
your E*TRADE Complete™ Investment Account or ideally
a no-fee, no-minimum Roth or Traditional IRA if you're eligible
at www.etrade.com/automaticinvestment.
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The fund's prospectus contains its investment objectives, risks, charges, expenses and other
important information and should be read and considered carefully before investing. For a current
prospectus, visit www.etrade.com/mutualfunds.
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OPTIMIZE YOUR INVESTING STYLE
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The Issue:
Is your portfolio aligned with the investing style you entered into Retirement QuickPlan? Being too
conservative in your investment strategy could have a dramatic impact on your accumulated nest
egg, particularly if you have many years to go until retirement. A conservative strategy can subject
you to the risk that inflation will erode your purchasing power. Alternatively, being too aggressive in
your investing style at a later age could subject you to unnecessary risks.
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Actions to Take:
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Update your investment strategy based on your financial goals, risk tolerance, and time horizon by using
our Intelligent Investing Optimizer4 at www.etrade.com/allocate to receive specific investment
recommendations.
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You can also get one-on-one advice from an experienced Financial Advisor,5 or discretionary portfolio
management from an experienced Wealth Advisor.6 Our Financial Advisors and Wealth Advisors can help
you rebalance your portfolio, manage a 401(k) rollover, or invest a lump sum.
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REDUCE YOUR EXPENSES
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The Issue:
It's important to understand the expenses you have now so you can use that to estimate the
expenses you might have in retirement. By planning and setting up a monthly budget, you will learn
how much money you have to spend, and where you are spending it. You can set and realize goals,
and decide in advance how your money will work for you. A budget can be as simple as it is
powerful.
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Actions to Take:
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Don't forget that some of your current expenses, such as your mortgage, can be paid off early. Also,
consider saving additional funds now for major expenses-for example, a child's education-so that you're not
still paying off loans while enjoying your retirement years.
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Once you are in retirement, the E*TRADE Complete™ IRA makes managing your retirement expenses
easy. After age 59½, you can withdraw cash anytime with no forms and no delays with our free
checkwriting, debit card, and online bill pay. Learn more about E*TRADE's Complete™ IRA at
www.etrade.com/livinginretirement.
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WORK A FEW MORE YEARS
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The Issue:
While the thought of beginning to enjoy your retirement early is appealing, if you retire early, you'll
have less time to earn and less time for your retirement assets to grow. Retiring early can also mean
smaller Social Security benefits. If you delay retirement by just a few years, you may see
dramatically improved results.
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Actions to Take:
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Consider retiring no earlier than the full retirement age defined by Social Security (see www.ssa.gov). This
is the age when you would receive full Social Security benefits. If you retire earlier, you can still receive
benefits beginning at age 62; however, those benefits will be reduced for each month before your full
retirement age.
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If you find your occupation fulfilling and enjoyable, why not work past your full retirement age? This will
mean additional income and enjoying employer-sponsored benefits, such as medical and dental benefits,
longer. And while you're working, make sure your money is working hard too. Consider consolidating
retirement accounts at E*TRADE by rolling over your old 401(k)s or transferring IRAs into one account.
This can simplify your financial life, and give you more time to pursue your interests. Get started at
www.etrade.com/rolloverira.
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Once you are in retirement, the E*TRADE Complete™ IRA makes managing your retirement expenses
easy. After age 59½, you can withdraw cash anytime with no forms and no delays with our free
checkwriting, debit card, and online bill pay. Learn more about E*TRADE's Complete™ IRA at
www.etrade.com/livinginretirement.
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INCREASE YOUR MONTHLY RETIREMENT INCOME
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The Issue:
Consider a part-time job in retirement to supplement your income from investments. This can be a good
way to stay active through a rewarding second career, and can enable you to afford a few luxuries you
might otherwise have to forgo.
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Actions to Take:
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Consider consolidating retirement accounts at E*TRADE by rolling over your old 401(k)s or transferring IRAs into
one account. This can simplify your financial life, and give you more time to pursue your interests. Get started at
www.etrade.com/rolloverira.
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Even if you are still working after age 70½, you'll need to take annual distributions from your IRA. The E*TRADE
Complete™ IRA makes managing your retirement distributions easy. After age 59½, you can withdraw cash
anytime with no forms and no delays with our free checkwriting, debit card, and online bill pay. Learn more about
E*TRADE's Complete™ IRA at www.etrade.com/livinginretirement.
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You can also get one-on-one advice from an experienced Financial Advisor,5 or discretionary portfolio
management from an experienced Wealth Advisor.6 Our Financial Advisors and Wealth Advisors can help you
rebalance your portfolio, manage a 401(k) rollover, define income strategies, or invest a lump sum.
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Want to Discuss Your Plan?
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The best way to keep your retirement goals on track is
to implement a specific plan and adjust it over time.
Experienced Financial Advisors5 and Wealth Advisors6
can help. Whether you want occasional investment advice,
discretionary portfolio management, or a combination of
both, E*TRADE Securities and its affiliates offer solutions
that can meet your needs. Call us at 1-877-800-1208, or
find the branch nearest you at www.etrade.com/centers.
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And Don't Forget...
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Review and update your retirement plan at least once a year at www.etrade.com/quickplan.
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1 This hypothetical example assumes that $25,000 is invested in a mutual fund with 1.5% fees vs .5%. It assumes a fixed annual return of 7% over
35 years. In addition to investment fees, there are additional expenses associated with a 401(k) including plan administration and service fees.
Investment returns and principal value will fluctuate so that shares, when redeemed, may be worth more or less than original investment.
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2 You can use the Automatic Investment Plan to add to existing mutual fund positions only. If you don't already own shares in the fund you wish to
buy, you must make an initial purchase before you can set up your Automatic Investment Plan. You are limited to one Automatic Investment Plan
per eligible no-load no-transaction fee fund.
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Automatic Investing Plans and dollar-cost averaging do not ensure a profit and does not protect against a loss in declining markets. Investors
should consider their financial ability to continue their purchases through periods of low price levels.
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3 To discourage short-term trading, E*TRADE Securities will charge an Early Redemption Fee of $49.99 on redemptions or exchanges of no-load,
no transaction fee funds that are held less than 90 days. Direxion, ProFunds, Rydex mutual funds and funds held at least 90 days will not be
subject to the Early Redemption Fee. All fees and expenses as described in the fund's prospectus still apply. Please read the fund's prospectus
carefully before investing.
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4 Investment recommendations are only available for portfolios with $50,000 - $250,000 of investable cash.
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5 E*TRADE Securities Financial Advisors provide recommendations on mutual funds, bonds, preferred stocks, closed-end funds, structured
products-including equity linked CDs, and asset allocation. Customers are required to complete additional forms and documentation in order to
receive such services. Different commission structures may apply and in some cases may be less or more than the rates posted on the website.
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6 Discretionary portfolio management services are offered through SEC-registered investment advisers, Howard Capital Management, Inc. and
Kobren Insight Management, Inc. You may request a free copy of either firm's Form ADV Part II, which describes among other things, affiliations,
services offered and fees charged. Discretionary portfolio management services are provided to customers with a minimum investment amount of
$250,000.

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OUR ASSUMPTIONS
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INTRODUCTION
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The Retirement QuickPlan tool combines simulated future economic scenarios with an assumed asset allocation
and your anticipated cash flows to create a forecast for retirement. The information you provide, including
anticipated income and expenses, is used to run multiple simulations of a retirement plan to determine the
likelihood of your assets being able to cover your expenses throughout your life. And while Retirement QuickPlan
cannot predict future investment performance, by simulating 250 hypothetical future economic scenarios, it can
help you manage uncertainty and realistically assess the likelihood that your retirement assets will last throughout
your lifetime.
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Your personal and financial situation, the macroeconomic environment, and federal and state tax laws will
certainly change over time. Please note that the Retirement QuickPlan tool is not a substitute for a comprehensive
financial plan, and should not be relied upon as your sole or primary means for making retirement planning
decisions. Strategies that may be appropriate at one stage of life or point in time can become inappropriate in the
future. Changing needs and circumstances, including changes to the economy and securities markets in general,
make it prudent to determine whether your strategy should be updated. You should discuss your situation with
your financial planner, tax adviser, or an estate planning professional to identify specific issues not addressed by
Retirement QuickPlan.
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MONTE CARLO SIMULATIONS
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All calculations and results from Retirement QuickPlan are generated through Monte Carlo simulations based on
historical market data. Monte Carlo simulations are designed to give you a more realistic assessment of how your
investments may perform by looking at a wide variety of potential market scenarios that take fluctuating market
returns into account. Instead of basing our calculations on just one average rate of return, we generate a minimum
of 250 computer simulations of what hypothetically may happen to your assets over a given time period. Each
simulation includes up and down markets of various lengths, intensities, and combinations. These simulations will
determine the likelihood that you will still have at least $1 remaining in your portfolio at the end of your retirement.
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Market simulations are estimated at three different simulation success rates or "confidence levels." These three
different confidence levels are 50%, 70%, and 90%. For example, a 70% confidence level means that the
displayed level of projected retirement assets would be accumulated in at least 70% of the 250 or more historical
market performance scenarios incorporated into the tool. Put another way, a 70% confidence level means that out
of 250 simulations of hypothetical economic scenarios, you would still have at least $1 remaining in your account
at the end of your retirement in 175 of the scenarios, and you would run out of money in 75 of them. All
calculations are purely hypothetical and will not affect your actual results.
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The forecast begins by accepting information that you provide, including your current age, state of residence,
planned retirement age, anticipated time in retirement, annual income, savings and investments to date, monthly
additions, investing style, expenses, and any spouse/partner information. The results for "What You're Likely to
Have at Retirement","What You're Likely to Need at Retirement", and "Retirement Assets Over Time" are
forecasted using a minimum of 250 economic scenarios. Each scenario is based on the historical performance of
various asset classes as measured by benchmark indexes and represents a possible future investment outcome
for a portfolio comprised of those various asset classes. Of course, past performance is not an indication of future
results.
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It is important to note that there is no one ideal simulation success rate or "confidence level" appropriate for
everyone. People with significant income from Social Security and a pension may be willing to settle for a lower
success rate, while those who will depend almost exclusively on their retirement assets may prefer a higher
simulation success rate.
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It is also important to remember that the future could include any of the 250 market simulations as well as
scenarios that could be better or worse than the 250 simulations represented.
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CALCULATIONS AND RESULTS
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Results are based on the investing style you entered in the Retirement QuickPlan tool, even if you have implemented
a different investing style for your existing brokerage or retirement accounts. Default investing styles in Retirement
QuickPlan are initially set as follows:
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The investing styles above (unless modified by you) are applied until you reach the end of the specified age
range. The tool then assumes an investing style that is one increment less aggressive for each successive age
range. For example, if you are 45 years old, the default investing style used by the Retirement QuickPlan tool will
be Balanced Growth. The tool assumes that once you reach age 50, your investing style will change to Balanced,
and so on.
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If you modify your investing style to be more aggressive than the default investing style, the tool will assume your
chosen investment style until the end of the applicable age range and then an investing style that is one increment
less aggressive for each successive age range. For example, if Aggressive Growth is chosen at age 42, the tool
applies Aggressive Growth from ages 42 - 49, Growth from ages 50 - 59, Balanced Growth from ages 60 - 65, and
Balanced from ages 65 - 70. The tool then assumes an investing style of Preservation of Principal at age 71 and
greater for all users.
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If you modify your investing style to be more conservative than the default investing style, the tool will assume
your initially selected investment style until the end of the age range where your initially selected investment style
meets the default investment style in the table above. For example, if the Balanced investment style is chosen at
age 25, the tool will apply Balanced from ages 25 to 59, Balanced Income from ages 60 to 65, Risk Averse from
ages 66 to 70, and Preservation of Principal from age 71 and greater.
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The investing styles above consist of predetermined asset allocations. Asset allocation refers to the process of
distributing assets in a portfolio among different asset classes such as stocks, bonds and cash. The purpose of
asset allocation is to reduce risk by diversifying a portfolio. The ideal asset allocation differs based on the risk
tolerance and time horizon of the individual investor. The Retirement QuickPlan tool uses model investment
portfolios that are comprised of the following high-level asset classes in the following proportions:
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The model investment portfolios are further sub-divided as follows:
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All forecasts are derived at the asset class level. Capital market assumptions are applied to determine the
simulated returns and yields for each asset class for every year in every simulation run. The estimated rates of
return for each sub-divided asset class used in Retirement QuickPlan are as follows:
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Of course, the estimated rates of return figures only represent our assumptions, and should not be
viewed as predictions or guarantees of future performance.

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Other than "cash," it is not possible to invest generically in any of the above asset classes. All assumed rates of
return include reinvestment of dividends and interest income. Other investments not considered may have
characteristics similar or superior to the asset classes identified above.
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Portfolio returns are based on each economic scenario. For each year in the forecast, Retirement QuickPlan takes
the portfolio balances after all withdrawals (your expenses), calculates the income and capital gain/loss returns
based on historical averages, and then computes any taxes on these returns. After-tax income and capital gains
are added to the portfolio balance. After-tax losses are subtracted from the portfolio balance.
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TAX CONSIDERATIONS
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The Retirement QuickPlan tool differentiates between taxable, tax-deferred and tax-exempt investments if you
categorized your accounts accordingly in the tool's "Savings & Investment Details" section. The account type you
selected (e.g., 401(k), Traditional IRA, etc.), determines if the account will be treated as taxable, tax-deferred or
tax-exempt. If you did not categorize your accounts in the tool's "Savings & Investment Details" section, all
savings and investments are treated as if they are taxable. In this case, the tool assumes that taxable accounts
are populated with post-tax dollars and that dividends, interest, and capital gains are subject to federal and state
taxes.
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Tax-deferred accounts, such as 401(k) plans or Traditional IRAs, are populated with pre-tax dollars and the tool
assumes that any gains are not taxed until withdrawn. The tool's logic also treats withdrawals from tax-deferred
accounts as taxable income in the tax year withdrawn. In addition, withdrawals before age 59½ from tax-deferred
accounts are subject to a 10% early withdrawal penalty, and the tool factors this in.
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The tool assumes that tax-exempt accounts, such as Roth IRAs, incur no tax liability for capital gains, interest or
dividends. It is also assumed that the assets in the account are held for the required 5-year holding period.
However, any withdrawals from a tax-exempt account prior to age 59½ are subject to a 10% early withdrawal
penalty, and the tool factors this in.
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For each year in the retirement forecast, the Retirement QuickPlan tool estimates taxes on yield and capital gains.
To compute taxes on yield, Retirement QuickPlan determines if the yield is in the form of an equity dividend or a
fixed income coupon. Federal dividend tax rates are applied to equity dividends and federal marginal ordinary
income tax rates are applied to fixed income coupons. To compute capital gain taxes, Retirement QuickPlan first
assumes that a percentage of the portfolio is sold each year in retirement. Then the long-term capital gain rate is
applied to these estimated realized capital gains.
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In addition, in some instances, income from Social Security is subject to taxation. This occurs if total income from
all sources exceeds certain federally-defined levels and depends on filing status.
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Your results may be affected if your marital status is different than "single" or "married, filing jointly" as this
determines the effective tax rate used in the projections.
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MATERIAL LIMITATIONS
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IMPORTANT: The projections or other information generated by the Retirement QuickPlan tool regarding the
likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and
are not guarantees of future results.
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Material limitations of this tool include, but are not restricted to, market performance and taxes, as described
immediately below.
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For market performance, the tool considers the probabilities that certain asset classes might achieve certain
results under different market conditions. The tool assumes a level of diversity within each asset class consistent
with a specific market index. There is a distinct possibility that market extremes may occur more frequently than
we have assumed and that our asset class forecasts may not reflect actual investment returns of the asset
classes. Future results for all asset classes may materially differ from those assumed in our calculations.
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The Retirement QuickPlan tool does not take into consideration all asset classes. For example, asset classes
such as real estate, precious metals and currencies are excluded from consideration. Asset classes not
considered may have characteristics similar or superior to those being analyzed.
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In addition, portfolio returns assume the reinvestment of interest and dividends, no transaction costs, and no
management or servicing fees. Performance returns for actual investments generally will be reduced by fees or
expenses not reflected in these hypothetical illustrations.
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As noted above, if you did not categorize your accounts in the tool's "Savings & Investment Details" section, all
savings and investments are treated as if they are taxable. Estimated taxes on dividends, interest, and capital
gains are also made based on taxable accounts. Tax law changes could have an impact on results.
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OTHER KEY ASSUMPTIONS
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Inflation within Retirement QuickPlan is modeled with a mean of 2.3% and a standard deviation of 3.24%. This
means that over the life of your plan, the average inflation rate will be 2.3%, but this rate may vary from year to
year. While this value may understate expected inflation by a small amount, it is a reasonable estimate of
expected future inflation. In addition, the variation of the inflation, as opposed to a fixed rate, allows for a more
realistic modeling of real world situations.
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Salary growth is estimated within Retirement QuickPlan as 1.5% above inflation. This figure is derived from a
Department of Labor study.
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The results of the Retirement QuickPlan tool are based on the dates you enter for the beginning and ending of
your retirement. The tool does not consider the impact on your nest egg should you live longer or shorter than the
period you enter.
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Social Security estimate is based on the potential benefit amounts provided by the Social Security Administration.
The estimate is based on a single person's salary if you did not include a spouse/partner, and the estimate is
based on two individual salaries if you did include a spouse/partner. To determine your actual benefit amount,
please visit www.ssa.gov.
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Retirement QuickPlan assumes that you and your spouse/partner (if applicable) were born on January 1,
therefore, your actual results may vary.
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With the exception of Mortgage expenses, all expenses entered in Retirement QuickPlan will be adjusted to take
into account the impact of inflation. If a Mortgage expense is entered, the expense amount remains constant
during the time period you entered.
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All results generated by the Retirement QuickPlan tool are shown in future dollar values. Future dollar values
illustrate how current investments or expenses could grow over time taking into account the effects of projected
inflation, which as noted above is modeled with a mean of 2.3% and a standard deviation of 3.24%.
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Default annual income assumptions are based on U.S. Census Bureau, Current Population Survey, 2007 Annual
Social and Economic Supplement..
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Default savings & investment assumptions are based on Federal Reserve Board 2004 Survey of Consumer
Finances.
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Default monthly expense assumptions are based on U.S. Bureau of Labor Statistics' Consumer Expenditure
Survey 2005.
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